ASIC releases discussion paper on private and public capital markets

The Australian Securities and Investments Commission (ASIC) has launched a discussion paper on the evolving dynamics of public and private capital markets, calling for feedback on potential regulatory adjustments.

The paper, Australia’s evolving capital markets, outlines key trends, including declining public market listings, rapid growth in private market investment, and the increasing influence of superannuation funds. ASIC Chair Joe Longo emphasised the importance of balancing market attractiveness with investor protections.

ASIC is particularly focused on:

• The cyclical downturn in Australian initial public offerings (IPOs) and public company listings.

• The risks in private credit markets, where failures are anticipated.

• The impact of superannuation dominance on market stability.

• The need for improved transparency and data collection on private markets.

Globally, regulators are adapting to similar shifts, addressing concerns like valuation uncertainty, conflicts of interest, and illiquidity in private markets. ASIC has also ramped up its supervision of private equity and credit funds, focusing on governance, valuation practices, and investor protections.

Feedback on the discussion paper is due by 28 April 2025.